Standard Fiscal Revenue
Fiscal revenue is the overall financial capital of a government, usually a national government. This revenue is generally gained through taxation, but it can also be gathered through other sources such as selling off government assets (land, buildings, and other valuables), making fines and fees, and seizing assets of criminals. As of 2019, the global fiscal revenues of all governments in the world combined was estimated to be 91,782.5 billion US dollars.
Taxation is the main source of fiscal revenue for governments. Taxes are either direct or indirect. Direct taxes are taxes that are paid directly to the government, such as income taxes, property taxes, and corporate taxes. Indirect taxes are those that are included in the price of goods and services, such as sales taxes, excise taxes, and value-added taxes. Taxes are by far the largest source of fiscal revenue for most governments. For example, in the US, federal taxes accounted for approximately 77.4% of federal revenues in 2019.
Another source of fiscal revenue is government-owned goods and services. This includes the sale of public land, government loans, and the sale of government goods and services. It also includes fees and fines paid by people who use government services, such as water and electricity. Governments can also sell their rights to the use of certain resources such as minerals or the right to sell certain products.
In addition to the sale of goods and services, governments can earn income through the auction of financial assets. This could be auctioning off treasury bonds, stocks, and other financial instruments. Governments can also auction off the right to extract resources such as oil and gas.
In some countries, foreign aid can also be counted as fiscal revenue. Foreign aid is money given by a government to another government, usually an underdeveloped country. It is often given to help countries improve their market access, infrastructure, public health, and agricultural productivity. These funds can either be given as grants or loans, or as an investment in the country’s industries or infrastructure.
Fiscal revenue is central to the economic health of a nation, as it provides financial support for a country’s infrastructure, public services, and other investments. It is also important for a country to have enough fiscal revenue coming into its economy in order to handle crisis situations such as natural disasters or economic downturns. Fiscal revenue also determines how much money a government can spend on social programs, education, and defense.
